India’s competition agency has sought a Supreme Court ruling in a challenge to its investigation into Amazon and Walmart’s Flipkart e-commerce platform.
this competition commission of india (CCI) wants a ruling on 23 legal cases filed by Samsung, Vivo and others in India’s high court, claiming that their aim is to derail investigations.
In a filing on December 3, the CCI asked the court to hear 23 challenges raised by Samsung, Vivo and several vendors on Amazon and Flipkart platforms so that the cases can be adjudicated quickly. But it has not been released publicly.
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Amazon declined to comment, while Flipkart, Samsung, Vivo and the Competition Commission did not respond to requests for comment.
E-commerce sales surge
The investigation represents a major regulatory challenge for Amazon and Flipkart as e-commerce sales in the market are expected to exceed $160 billion by 2028, rising from $57 billion in 2023 to $60 billion.
The commission’s investigative arm concluded in August that Amazon and Flipkart violated India’s antitrust laws by favoring specific sellers on their sites.
The investigation also found that smartphone companies such as Samsung and Vivo colluded with the two e-commerce companies to launch products exclusively online, violating these laws.
Since the findings were announced, some Amazon and Flipkart vendors, as well as Samsung and Vivo, have filed nearly two dozen lawsuits in India’s five high courts to block the investigation as they hope to “undercut and undermine” the process, the committee said. .
If separate proceedings were allowed, “it would lead to absurdity as it would interfere with the flexibility of the (commission’s) director-general to investigate any matter.”
Amazon and Flipkart have been criticized for their business practices for years by small retailers, who say they suffer losses due to deep discounts and preferential treatment offered by their platforms.
Amazon and Flipkart deny any wrongdoing.
Delay in application for preferential treatment
A 2021 Reuters investigation based on internal Amazon documents found that the company provided preferential treatment For years, information has been provided to a small group of sellers and used to circumvent Indian law.
The current committee investigation began back in 2020 but has encountered multiple delays.
Twenty-three lawsuits have been filed across India in the latest challenge to the case, most of which accuse the commission of not following due process during its investigation.
A lawyer familiar with the proceedings said the committee’s request to transfer the 23 cases to the Supreme Court could be heard this week.
- Reuters Additional editing by Jim Pollard
See also:
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Amazon plans to increase India investment to $26 billion by 2030
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Amazon launches air cargo service in India as online sales grow
Tencent acquires stake in India’s Flipkart for US$264 million – Economic Times
Walmart-owned Flipkart targets US$60-70 billion for 2023 IPO
India aims to break Amazon, Walmart’s grip on e-commerce
Amazon and Flipkart fail in last-ditch effort to thwart India’s antitrust probe
